5 Reasons Why Apple Shouldn't Buy Beats Electronics

The techosphere's always-buzzing rumor mill has been set on overdrive recently with a report that Apple is in talks to buy Beats Electronics for $3 billion. Beats. The audio hardware company co-founded by Dr. Dre that makes the headphones being rocked by a third of the people on my morning subway commute.

Indeed, the company has made a killing in recent years with its line of premium-priced headphones and speakers. And more recently, Beats has entered the streaming space with its curation-focused Beats Music service.

While big-money acquisitions are nothing out of the ordinary in Silicon Valley these days, or even for Apple, this one (which we should note is only rumored at this point) has a certain resonance for longtime Cupertino watchers.

There's a reason: It's a needlessly dumb investment, even for an unfathomably well-moneyed company like Apple. Here's five reasons why:

1. There is nothing special about Beats hardware

Every day I see folks from just about every walk of life wearing Beats headphones. Indeed, Beats has successfully mastered the trick of pan-demographic appeal—kinda like Apple. I will even concede that Beat's bass-heavy hardware can deliver a great sound and is, to be sure, is a step above most consumer headphones.

Beats has, to their credit, managed to ride a particular wave of branding, style, and high-end audio to great financial effect. But the company doesn't own any startlingly unique technology, nor have they proven that they are a company that can continually deliver Apple-like innovations for decades. Beats is hot right now, but they're by no means irreplaceable.

2. Spotify is better and more popular than Beats Music

A lot of the speculation is that Apple is less interested in Beats' hardware than they are in Beats Music. This is, in theory, so that Apple might directly compete with a la carte streaming services such as Spotify.

Sure, Apple would like to be in the streaming service game. Who wouldn't? And it is important to note that an acquisition of Beats would also give Cupertino access to Jimmy Iovine, the co-founder of Beats (and of a little record company called Interscope).

Iovine is arguably one of the most important men in music. Surely this multi-billion dollar connection would allow Apple to fortify its streaming mojo, no?

Perhaps Iovine can help Apple find its streaming footing. But that brings up this question: If not more popular, why isn't Beats at least better than Spotify? Sure, the service has only been live for a few months, but it lacks a convincing reason why anyone would switch over to it.

Let's start with the fact that Beats Music does not, like Spotify, offer a free tier. One of the service's biggest selling points has been expert-curated playlists? But here's the thing about that: Other people have crappy tastes in music.

That's why we like Spotify and Pandora—because it's only our tastes what matter. I'm a huge Nine Inch Nails fan, but I so don't care about what Trent Reznor is listening to. Or Rolling Stone. Or Pitchfork.

Growing up, all I had was FM radio and MTV telling me what to listen to (often repeatedly). Now it's time for me to take control. And Spotify works just fine.

3. Apple already has iTunes

Going further with the Beats Music-is-the-reasoning, doesn't Apple already have a popular music brand that lives on multiple devices and has the ability to stream music? iTunes is one of the most popular brands in tech, and you don't need Beats Music—or Jimmy Iovine—to make it better.

Additionally, wasn't the creation of an a la carte streaming service the reason why Apple bought and dismantled Lala back in the day? Perhaps Apple is planning on killing Beats Music so as to absorb the good parts into iTunes, but it seems like there's cheaper ways to do this.

4. Fashion doesn't last

People aren't audiophiles. Let me clarify: Most people aren't audiophiles, no matter how much they may insist on the contrary. Sure, most people enjoy good sounding music, but very few could accurately describe what "sculpted high-mids" actually means. Most people are buying Beats headphones for the fashion statement they make.

And while fashion is just fine and dandy, it doesn't last.

As I said earlier, Beats makes quality hardware, but the company is able to sell them at a premium because they've become status symbols. But fashions come and go. There are indeed better headphones out there, and IMHO, ones that look a whole lot better.

Something else will come along, eventually, and that will be the hot new accessory to have.

5. Controversial connection

Dr. Dre has been the musical force behind some of the biggest names in hip hop history, including NWA, Snoop Lion (or whatever he is now), Eminem, and 50 Cent. It would be both easy and unfair to cherry-pick inflammatory lyrics from any of these performers and associate them with Dre, and therefore (possibly) Apple. So I won't be doing that.

But you know what wouldn't be completely unfair to bring up? The fact that Dr. Dre beat a woman up in 1991. Not to mention that Dre's ex, rapper Michel'le, also recently alleged that Dre used to beat her when they were together.

So, yeah, that's Apple's potential new partner. And Apple is really concerned with peception and image.

What do these past incidents actually mean? Probably nothing. The (perhaps sad) fact of the matter is that beloved musicians often receive a pass for reprehensible behavior that would ruin the reputation of anyone else. That's just the way the industry works.

With roots as a community organizer in Chicago, Evan rose through the ranks of Illinois state politics being elected to serve as President of United States in 2008. In addition to ending U.S. involvement in unwise overseas military operations and rebuilding the national economy from a devastating recession, Evan has been writing about tech since 2010, and writing everything else since the 90s. You can follow his thought sneezes over on the Twitter (@haldash).
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